INSURANCE giant Direct Line has dismissed speculation that it is to move into the breakdown recovery market with a fully-liveried own-brand service. The company already offers a limited service operated on its behalf by Europ Assistance, but dismissed as 'pure speculation' newspaper stories claiming it is to go into competition with the AA and RAC by offering a comprehensive in-house recovery operation.

The insurer has previously diversified into allied sectors by opening its own network of vehicle repair shops, presently having six sites with another two in the pipeline. 'We have no immediate plans to launch a new breakdown product,' a spokesman said. 'Direct Line has always offered its customers a breakdown service and like all forward-thinking companies we are always looking at ways that we can improve our service to customers.'